Setting the industry standard for delivering homeownership in America LOAN Playbook
At American Pacific Mortgage, our core mission is to create experiences that matter while serving the home financing needs of individuals and families in the communities where we live and work. We understand the importance of every transaction and work hand-in-hand with everyone involved to ensure timely, professional, and smooth (read: boring) closings. We do this with the goal of making our Loan Advisor, real estate agents, and the myriad of other participants in the transaction look good. APM’s diverse and extensive loan programs provide you and your buyers with a satisfying loan experience due to their ease and simplicity. We aim to set the bar for how homeownership should be tackled in America, and we do this by creating experiences that matter. This begins with taking ownership of the process—from education to our product offerings, to qualifying the homebuyer, to on-time closings, and everything in between. This is why we’ve been voted one of the top mortgage companies to work with year after year. We’re not aiming for the bar - we’re here to set it.
First Time Homebuyer Products .......2 Government Products ........................9 Standard Products ..............................14 Construction Solutions.......................20 Purchase Tools.....................................23 Specialty Products ..............................29 Equity Products....................................35 Table of Contents
2 First Time Homebuyer Products
3 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Down Payment Assistance (DPA) We know some potential homebuyers could really use a little help with their down payment. APM has access to hundreds of programs that can help buyers in specific geographic areas, in addition to broader programs that support larger areas. Talk to your Loan Advisor about regional assistance programs that may help you buy your home. • Get their dream home now - don’t wait to save for a down payment • Available for first-time or repeat homebuyers, co-borrowers don’t have to live in the property • With low down payment options, cancelable mortgage insurance and more, homeownership can be more affordable • Some options do not need to be paid back if requirements are met • National DPA • Second mortgage loan up to 4% of the lesser of the appraised value or purchase price (no dollar cap) • May be paired with FAHE My Place Mortgage, or the Springboard to Homeownership Second • Not available in all states • DPA work in conjunction with an FHA loan—FHA product guidelines apply • Income limits apply • This DPA has option for repayment or forgivable over time • Chenoa Fund • Down payment assistance provided will be 3.5% of the lesser of the sales price or appraised value • May be used with HomeReady or conventional standard first mortgage • Proceeds can be used for either down payment assistance, closing cost assistance, or a combination of both. Second mortgage proceeds may be used to fund up to 100% of the Borrower’s cash to close. • Min 660 credit score • Income limits do apply • Within Reach • 30 year fixed rate loan • Down payment assistance • No minimum down payment • Loan amounts vary by state/county requirements set by FHA • Income limits apply • Homebuyer education required for one borrower • Not available in New York REALTOR ADVANTAGES • Get more buyers into homes with DPA loan options • Expand your reach with additional programs that provide flexibility and financing alternatives • Low down payment and DPA programs enable homeownership faster reality for many First Time Homebuyer Products
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 4 First Time Homebuyer Products • Available for first-time and repeat homebuyers • Allows more options for buyers in home search due to reduced cash needed to close • May be combined with other DPA programs • Owner-occupied purchase loans • Single-family, condo, PUD & manufactured homes allowed • 1% minimum down payment is required from the buyer • 2% lender grant is issued from APM—not to exceed $4,500 • 620 minimum credit score • Loan amount cannot exceed $275,000 • Applicants’ Income cannot exceed 80% of the AMI • Property must be purchased as a primary residence • Single-family residence only (no multi-family) • New construction is allowed • First-time and repeat homebuyers acceptable • No pre-payment penalty REALTOR ADVANTAGES • Assist underserved communities in building wealth and becoming homeowners over the long term • Help clients get into a home now instead of waiting • Buyers contribute 1% and APM provides a 2% grant - giving them 3% equity 1% Home Homeownership just got 2% easier! Borrowers can now buy a home with as little as a 1% down payment. They’ll contribute a 1% down payment, and APM will provide a 2% grant (not to exceed $4,500), providing them an automatic 3% equity in your home at closing. Customers who qualify for this program may contribute up to a 3% down payment and still receive the 2% lender grant from APM. They don’t have to be a first-time homebuyer to qualify. There are no location restrictions.
5 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Community Lending American Pacific Mortgage is dedicated to strengthening the communities we serve by building generational wealth through homeownership. Properties within pre-determined areas will see notable price improvements and may qualify for a Loan Level Price Adjustment waiver. • Buy a home in specific areas at a lower interest rate • Buy a home with as little as 3% down payment • Ability to leverage other homebuyer grants and programs for further assistance • Use with FHA, VA and other programs • Primary residences only • 1-4 unit family homes • Condo, PUDs & Co-Ops allowed • First-time or repeat buyers eligible • Geographic restrictions apply • Pricing improvement for qualified buyers REALTOR ADVANTAGES • Expand your footprint in underserved communities • Help clients access homeownership who otherwise might not have been able to First Time Homebuyer Products COMMUNITY LENDING
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 6 First Time Homebuyer Products Low Down Payment Loans Home Ready and Home Possible are conventional programs designed as alternatives to FHA lending. These products may be the right solution for low-income buyers who need low down payments or flexible guidelines. • Program offers qualified low-income borrowers a low 3% down payment financing option. • Non-occupant co-borrowers may help borrowers qualify for a 1-unit property. • Many types of down payment sources are acceptable, including family, employer-assistance programs, secondary financing, and sweat equity. • At 20% equity, borrowers may cancel mortgage insurance -reducing monthly mortgage payments • Purchase/rate and term refi • 97% LTV & 105% CLTV with qualifying 2nd • Temporary buydowns allowed • Boarder Income allowed • Non-occupying borrowers permitted • No minimum contributions required from borrowers own funds (i.e. gifts allowed) • Income restrictions apply: 80% of AMI • Single family (1-4 units), condo, PUD allowed REALTOR ADVANTAGES • These programs may qualify buyers, including: • Buyers with parents as co-signers • Seniors looking to downsize • Newlywed couple short on savings but able to cover down payment with wedding funds • Renter with two long-term roommates who wants to jump to homeownership and bring their roommates (and their rent) with them
7 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES First Time Homebuyer Products Foreign National & DACA Loans Non-citizens interested in buying a home in the US can still qualify for a loan. A Foreign National Mortgage can be made without credit or a social security number and can be used as a primary, secondary or investment property. DACA (Deferred Action for Childhood Arrivals) is a government program created for undocumented individuals who were brought to the United States as children, raised in the U.S., and primarily identify as American. They are also referred to as “DREAMers,” because they qualify for this program as they benefit from the Development, Relief and Education for Alien Minors Act, which grants temporary conditional residency with the right to work. • Use for upsizing or downsizing current home with access to equity • Buy a property closer to family or pay off existing mortgage and debts • Creates another source of income • Financial planning tool available to assist in long range planning • Foreign National: • No US credit or passport required • Single family, townhomes, condos • Loans up to $1M • Second home or investment property • No primary allowed • Liquid assets for down payment and closing costs • 3 open credit trade lines or verifiable letters of reference from banks showing open credit lines and acceptable payment history • 65% max LTV • In-house underwriting • DACA: • Valid EAD (employment authorization document) card • Valid Social Security Number • Valid state-issued ID • Minimum credit & income requirements for desired program met • Established credit, employment & income history in the US • FHA and conventional Fannie Mae options REALTOR ADVANTAGES • Thousands of DREAMers are ready for homeownership as they grow in number • Many companies require a minimum 30% down payment for foreign national loans, APM only requires up to 20% • In-house underwriting means we can work quickly with borrowers if any issues arise
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 8 First Time Homebuyer Products Link Loan Are your clients ready for homeownership but not quite mortgage ready? We’ve got them covered! Learn how they can finally get out of renting and into a home with non-traditional financing. Introducing the Link Loan – they can finally get out of renting and gain the benefits of homeownership today! • Get all the privileges of homeownership, including living in and personalizing the home • May be able to gain the tax benefits from homeownership – seek advice from CPA • Reap the benefits of earned equity in the home • Helps those who don’t qualify for traditional financing • Can be self-employed less than two years • 1099 contractors, gig workers lacking job history • College graduates with student loan burdens • ITIN/DACA eligible borrowers • Multi-generational households • Credit issues preventing mortgage approval • Minimum credit score of 600 (660 for self-employed) • 3.5% down payment required (may be higher in some instances) • FHA loan limits apply • Available for SFR, condo, townhome • Up to 5 acres allowed • Not allowed: mobile homes, homes in flood zones, leaseholds REALTOR ADVANTAGES • Help buyers secure a home today with non-traditional financing • Assist your buyers in shopping for a home and extending an offer, as you would with traditional financing
Government Products 9
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 10 Government Products FHA Loans This loan was designed to make homeownership possible by allowing flexibility with credit and down payments. FHA financing is not just for first-time homebuyers and provides opportunities for many clients that meet the loan guidelines. • Down payment options as low as 3.5% • Used with most DPA programs • Down payment and other required funds may be gifts • Seller concessions to help with closing costs and/or buydown costs • Don’t need to be a first-time homebuyer • Streamline refinance possible with no appraisal, no income verification and no credit check required. • Must be owner’s primary residence (co-borrower does not need to live in home) • Mortgage insurance is required • Max loan amount varies based on the area • Debt-to-income limits apply • Bankruptcy seasoning: 24 months • Short sale/foreclosure seasoning: 36 months • FHA guarantees mortgage • Can be used on homes with 1-4 units • More liberal guidelines than conventional loans • Flexible credit review • Fixed or adjustable rates • No prepayment penalty • Temporary or permanent rate buydowns available REALTOR ADVANTAGES • Grow your client base: options for people with student loan debt or lower credit scores • Specialize in first-time home buyers • Seller/Agent contributions up to 6% are allowed for closing costs • Low credit requirement • Low down payment options • Can be paired with DPA programs
11 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES USDA Loans Working in a rural area with USDA coverage? Then this is a great loan for your clients! This loan was created to help people become homeowners in rural America with no down payment needed. The USDA loan provides flexibility on credit, but does have household income restrictions. • No down payment required • Fixed-rate mortgage • U.S. Dept. of Agriculture guarantees mortgage • Rates are often better than conventional loans • Seller contributions toward closing costs allowed • Reduced fees • Not limited to first-time homebuyers • Flexible credit and underwriting terms • Available in rural and some suburban areas • Must be owners’ primary residence • Minimum credit score of 580 • Household income limits vary based on location • Debt-to-income limits apply • Bankruptcy/foreclosure/short sale seasoning: 36 months • Streamline refinance available with no appraisal, no credit check and reduced fees. REALTOR ADVANTAGES • Great for Realtors wanting to expand their coverage areas • Good option for those buying in rural areas (and many suburban areas) • Seller can make contributions • Low credit scores requirement Government Products
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 12 VA Loans If your clients are currently serving in the Military, an eligible Veteran, or surviving spouse then it is time to take advantage of one of the most useful military benefits! We work to knock down barriers and help get VA offers accepted. We strive to make your purchase offer viewed as equal to or more desirable than FHA or conventional loans. We also provide full underwriting approval before looking for a home. • Low fees • More relaxed credit and income qualifications • No loan limits with full entitlement • VA home loan benefit may be used more than once • Gifts, grants, and seller contributions (6% max) allowed • 100% gift funds allowed • Guaranteed by the Veterans Administration (VA) • To qualify, borrower must be a current member of the U.S. armed forces, a veteran, a reservist/national guard member, or an eligible surviving spouse • No down payment required in most cases • No PMI requirement • No maximum loan limit • Must be owner’s primary residence for at least one year • Can be used to buy a single family residence, condo, townhouse, manufactured home, or new construction. • Minimum credit score of 580 • One time VA funding fee (based on down payment, but may be waived in certain circumstances) • Termite report required on most VA loans • Certificate of Eligibility (COE) needed REALTOR ADVANTAGES • We handle all the paperwork! No significant time delays • Assumable (if seller agrees) • Ability to give back to our veterans Government Products
13 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Reverse Mortgages Owning a home and leveraging the equity they’ve built can help make the retirement years less stressful for your clients, while providing them and their heirs with peace of mind. • Use for up-sizing or downsizing current home with access to equity • Buy a property closer to family or pay off existing mortgage and debts • Creates another source of income • Financial planning tools available to assist in long range planning • May be used for purchase or refinance • Borrower maintains ownership • Proceeds typically tax free • Does not affect Social Security or Medicare • Borrower is never forced to leave the home • Debt does not pass to heirs • Primary residence only • All borrowers on the loan must be age 62 or older REALTOR ADVANTAGES • Use with purchase to allow older buyers to access their equity • Expands accessibility to properties for seniors Government Products Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA-insured reverse mortgages have an up front and ongoing cost; ask your Loan Advisor for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.
Standard Products 14
15 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Standard Products Conventional Loans Fannie and Freddie buy about half of all the mortgage loans made by lenders. This provides lenders with the capital to make more loans. These loans are great for anyone with solid credit that can meet Fannie and Freddie loan standards. • Down Payment options as low as 3% • No mortgage insurance with 20% or more down • Removable mortgage insurance at 20% equity • Can be used for second homes or investment properties • No limits on income, area or occupancy type. • Gifted money can be used for the down payment • Seller contributions allowed • Conforms to Fannie Mae and Freddie Mac standards • No primary residence requirement • Minimum credit score of 620 • Max loan amount varies based on the area • Debt-to-income limits apply • Bankruptcy seasoning is 48 months, foreclosure 7 years and short sale is generally 4 years. • Not insured or guaranteed by the federal government • If less than 20% down on a property, borrower pays for PMI • Bborrower must have good credit, a steady income, and money for a down payment • Borrowers with good credit receive lower rates • Owner occupied multi units allowed to 95% LTV REALTOR ADVANTAGES • The most popular loan product — provides easier loan approvals • Appraisal requirement flexible for certain scenarios • Low down payment options • These products fit most buyers, including primary homebuyers and investors
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 16 Standard Products First Responders/ Nurses/Teacher Options Teachers, law enforcement, first responders and nurses are all vital to our communities. We offer the Star program to these professionals with incentives and reduced fees. It’s our way of saying thank you for the vital services each of these professions provide to our communities • Reduce your lending fees by $800 as our way of saying thanks for all you do for the community • Makes it a little bit easier for you to obtain a mortgage by providing DPA options to give more purchase power and reduce out-of-pocket expenses • Reduce monthly mortgage payment with lender paid mortgage insurance • Take advantage of a float-down option if rates go down prior to signing loan documents • Teachers/Principals/School Counselors • Retired* or currently full-time employed with a teaching credential in a public/private K-12 school • Police/Sheriff/Highway Patrol/Trooper/Border Patrol/ Correctional Officers • Retired* or currently full-time employed with city/county/ state/federal law enforcement • Firefighters/First Responders • Retired* or currently full-time employed with city/county/ state or private company • Nurses • Retired* (RN and CNA) or currently full-time employed in a hospital or clinic • Available for VA, FHA or conventional mortgages • Reduced lender fees for eligible buyers (up to $800) • Gift funds can be used for 100% of the home purchase down payment • Potential exclusion of student loan payments with proof of deferment REALTOR ADVANTAGES • Expand your homebuyer pipeline to include teachers, police, fire fighters, first responders and correctional officers • Give your buyer more purchase power with 100% gift fund DPA and/or lender paid mortgage insurance options • Reduction in lender fees only given to our Star professionals *Must be able to show proof of retirement, i.e. retirement statement
17 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Standard Products Jumbo Loans Have a borrower that exceeds the conforming loan limit? Not to worry—we have tons of jumbo solutions to meet most borrowers’ needs. Combine that with in-house delegated underwriting, and we control the process end to end. Jumbo lending is not limited to the banks, APM is a top lender in the jumbo space. • Gift funds can be used for a down payment • Stock (RSU) income allowed • Split mortgage options can provide an overall better payment than a traditional one mortgage solution • Programs for up to $3M,(with a few programs up to $5M!) • Max LTV/CLTV is 90% • ARM, fixed and interest only options available* • Options for credit scores as low as 660 • Asset depletion options available • Departing Residence Waiver options available • Non-warrantable condo programs • Allowable short-term rental options • Split mortgage options available — solutions that may qualify more borrowers REALTOR ADVANTAGES • In-house operations team handles from end to end — controlling the experience and closing on time • Expand your client reach with more jumbo options • Split mortgages can be a great solution for homes that exceed high-balance conforming limits where rates are often higher. The house payment is split between a first and second mortgage, often providing a lower payment • Down payment may be as low as 10%* *Restrictions/guidelines may apply
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 18 Standard Products Manufactured Loans Today’s manufactured homes break all the molds, opening the market for buyers to get into a home where they previously could not. APM provides a variety of loan programs to support the purchase or refinance of a manufactured home. • The Manufactured Housing Select program offers a relatively inexpensive way to enter the housing market through the purchase of a manufactured home • Many loan products available to fit the needs of a buyer • Construction financing available • Conventional, FHA and VA loans • Primary residences and second homes • Up to 97% on a primary purchase and rate-term refinance • Similar features to site-built homes • Cash-out refinance available • Specific guidelines by program regarding foundations, roof pitch, garages, etc. REALTOR ADVANTAGES • Open doors for your clients to an affordable housing option • Offer a service many other real estate agents cannot by including manufactured properties in your home search
19 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Standard Products Condos Condos can be ideal for young professionals and families just starting their homeownership journey, as well as Empty Nesters who are ready to downsize. Regardless of age, the benefits of condos may be worth exploring for a buyer. Often, there is less competition for a condo than there is for a single-family house, making these dwellings more attractive to those who don’t want to deal with a massive bidding war. • Condos often come with community shared amenities • It is possible to buy a condo in an unapproved complex if it qualifies for a spot approval • Condos tend to have less cost for maintenance and can even have lower costs for insurance if the HOA covers the exterior • Flexible occupancy guidelines • No Mortgage insurance required • Up to 90% LTV • Minimum 680 credit score • Purchase, rate & term and cash-out refinance available • Primary, second home and investment properties • Non-warrantable condos allowed • No prepayment penalty REALTOR ADVANTAGES • Ability to list and sell nonwarrantable condos • Loan Officers have access to specialists with specific condo expertise to help agents with their transactions CONDO MINIUMS
Construction Solutions 20
21 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Construction Solutions Construction Financing Building a home brings a whole new set of decisions, excitement, and frustration. APM has certified Builder Pros that have specific construction financing training and expertise that provide peace of mind. Whether it’s their first new build or not, we can get the financing in place to make your client’s dream home a reality. • Buy a piece of property and build your dream home with one easy loan • Streamlined approvals and draws • Dedicated construction team for quick processing • SecureLockTM available with up to 365-day rate lock • Don’t need to sell home to qualify • Owned land can be used for down payment • Manufactured homes allowed • Construction financing: • Up to 90% LTV financing • 660 minimum credit score • 50% max DTI ratio* • Single family properties only • 3 months payment reserve • 10% contingency fund • Up to 12 months to build • FHA and VA loans available • Permanent financing • Conventional, FHA and VA loans • 30-, 20-, 15-, and 10-year fixed-rate options • Permanent loan based on final appraised value REALTOR ADVANTAGES • Expands accessibility for buyers wishing to purchase property and build their dream home • Allows for agents to sell properties in builder projects and offer a one-time close option • APM’s Loan Advisors must complete a three part education course, to ensure clients are in good hands
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 22 Construction Solutions Home Renovation American Pacific Mortgage has a full suite of renovation lending programs to fit renovation projects large and small, including FHA 203(k) and Fannie Mae HomeStyle®. These programs allow buyers to purchase or refinance a home in need of repairs or renovation and roll the cost of improvements into the mortgage. The loan amount is based on the future assessed price of the home, which helps expand the purchase market to provide financing for short-sale or foreclosure properties in need of renovation. • If a borrower has found the location of their dreams, but not the home APM can help. • Not just for new home purchases! Clients can stay in their homes and make those additions or improvements they’ve dreamed of a reality • Manufactured homes allowed • 96.5% max LTV for FHA 203(k) program (110% of the after improved value/100% for condos) • Freddie Mac CHOICERenovation® programs • New construction or never-finished homes are not eligible • Eligible properties must be owner-occupied; can be 1-4 units, planned unit developments and condos (for condos, only interior rehabilitation is permitted) REALTOR ADVANTAGES • Expands the inventory available to buyers • Focuses on location, not the condition • Make clients for life by helping buyers create the home of their dreams in their desired neighborhood
Purchase Tools 23
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 24 Purchase Tools Secure Lock Shop, negotiate and close your transaction confidently knowing your buyer’s home loan is approved, locked and ready to close. Our SecureLockTM program allows buyers to obtain credit approval and lock in their interest rate before they find or build their homes. If rates drop within 21 days of closing, so does the rate! If interest rates rise, we’ve got them covered—the rate stays right where they locked it. • Peace of mind while shopping or waiting to build a home • Protection if rates rise, and the advantage to lower before closing if rates go down • Combine with Keys on Time program for double the security and confidence • Lock the interest rate while shopping for a home • Secure the interest rate for up to 360 days on new construction properties • Secure the interest rate for up to 180 days on regular purchases • Protects the interest rate if rates go up • Ability to lower the interest rate if rates go down • Most primary residence, conventional, high balance and FHA loans are eligible* REALTOR ADVANTAGES • Having your buyer’s home loan approved, locked and ready to close can give you assurance while you’re out shopping, negotiating or closing your transactions • Our program allows your buyers to obtain credit approval and lock in their rate BEFORE they find or build their new home. Secure rates available up to 360 days • A locked loan during a rising rate environment brings peace of mind *For primary residence only. Conforming and Government fixed loans up to $726,200 and fixed high balance to $1,089,300. Any 90 day locks require an upfront fee payable to APM within 5 days of the lock. Full credit approval required. Speak with your new home mortgage expert or Loan Advisor for full details. Rules, fees and programs may change at any time for any reason.
25 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Purchase Tools Keys on Time Help your buyers get their offers accepted. Present an offer backed by the purchasing power of full loan approval, and the commitment to close on time. If we don’t meet the closing date, we’ll pay $2,000 to the buyer or seller (buyer’s choice). • Many loan companies will not offer a full approval prior to a property going under contract. This gives buyers the advantage when competing against other offers without a full loan approval included • Be competitive with cash offers • Only an appraisal contingency needed • Close right after appraisal receipt and underwriting • May be combined with SecureLockTM program • The buyer completes application prior to an accepted offer, APM processes and provides a full loan approval • Over 90% of owner-occupied homes qualify • First-time and move-up homebuyers are eligible • Available for purchase transactions for single-family, condos, primary, investment and second homes • TBD properties are eligible REALTOR ADVANTAGES • Your clients offer has a competitive advantage • The $2,000 can be given to your client or the current owner if funding is delayed, which could help the offer if needed • Feel confident about your timelines • Quick turnarounds once a home is found
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 26 Purchase Tools Home Buying & Selling Assistance Temporary buydowns are great solutions for buyers looking for a lower payment for those first few years. A temporary buydown fee can reduce the rate by 3%, 2% or just 1% per year. For example, on a 2/1 buydown rate is reduced by 2% in the first year, 1% in the second year, then remains at the note rate for the remaining life of the loan for fixed-rate loans. These buydowns work great when the seller provides sales concessions to assist in buydown program. • Frees up cash in the beginning of the loan, allowing buyer to ease into monthly payments • Extra cash is particularly handy for costs after purchasing a home (furniture, landscaping and home improvements, etc.) • If paid off through a sale or refinance, any remaining buydown fees are returned and paid against the balance • Buydown may only be paid by seller, builder or lender • Available on most conventional, FHA and VA loans • Purchase loans of primary and second homes only • Borrower’s rate cannot increase more than 1% per year including the buydown annual increase • Borrower qualifies for monthly payment at the note rate (if a fixed rate) not the temporary rate reduction • 3/2/1 buydown, 2/1 buydown or 1/0 buydown options available • Fixed and ARM available REALTOR ADVANTAGES • Provides the ability to offer an incentive to buyers without lowering the list price • Seller can buydown the rate for their buyer and create an optimal solution
27 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES CashBuys If there’s competition for a home, we have you covered! Borrowers can submit a cash offer with no contingencies using APM’s CashBuys program. • Being a “cash buyer” gives clients a competitive edge • Allows buyers to bundle closing costs and financing costs into the cash-out refinance • Helps buyers regain cash immediately instead of waiting 6+ months to refinance • Make a cash offer without upfront funding • Stay liquid and know the costs before they buy • Know that they will qualify for funding • Loan could fully close without delayed financing • Buyers get full TBD loan approval from APM • Start shopping with your buyer to find a home within budget • Once home is identified, buyer can elect to use the CashBuys option. They’ll notify us and we’ll issue a certificate to include with the offer • Submit offer, waiving financing and appraisal contingencies up to full asking price • Once offer is accepted, we’ll work to secure buyer’s financing before the close date • If the financing isn’t ready, CashBuys is ready to go - the property will be purchased, then resold to buyer at the same price when the financing closes • Costs • 3% deposit required • 2% refunded when buyer closes financing • 1% cost for utilizing the program REALTOR ADVANTAGES • Present a strong contingency-free offer • Win bids in a competitive market • Good option for buyers to move quickly and beat competing offers • Think of it as insurance — if financing is not completed in time, CashBuys is ready to purchase Purchase Tools
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 28 Home Selling Assistance Sellers sometimes need help with buying a home before their current home is under contract. Other times, they need a way to sweeten the deal to entice buyers in a buyers’ market. APM has programs to help bridge the gap in financing. Our Bridge loan programs can help with the purchase of a new home before an existing home is sold. If a seller is unwilling to consider offers with sales contingencies, we have two programs to choose from. • We can help them purchase a new home before their existing home is sold, or allow for a little extra time and flexibility in selling their current home • We can help them leverage the equity from their current home (that is a pending sale) and use the funds to purchase a new home • If a seller is unwilling to consider offers with sales contingencies, they can close with confidence through our Bridge Loan program to present the strongest offer • Close with Confidence Bridge Loan • For borrowers who are under contract with their existing property • Don’t need a sales contingency • Borrower can use the equity from their current home (pending sale) to fund to the purchase of a new home • Borrower can omit any liabilities connected to the departing residence when qualifying for the new home purchase • Debt-Inclusive Bridge Loan • For borrowers whose existing property isn’t yet under contract • Borrower can use equity from current home to fund to the purchase of a new home • All of the debts for the departing residence, including any payments on the bridge loan (if any are required), are factored into the borrower’s total DTI when purchasing the new home REALTOR ADVANTAGES • Expand the inventory of options available by providing your buyer the most flexibility for purchasing a new home while selling their current residence. • Allows the borrower to act quickly to take advantage of bargains in the real estate market or in securing their dream property • Allows the most competitive purchase offer to be presented with no loan contingencies for the departing residence Purchase Tools
Products Speciality 29
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 30 Specialty Products Expanded Income Loans Every now and then a client comes along with income that’s difficult to prove, or who needs some expanded criteria to help qualify. APM has loan programs that open the door to borrowers who need access to financing but don’t fit the standard agency or jumbo program guidelines. This includes: • Borrowers who need to use bank statements as income documentation (self-employed only) • Borrowers without a social security number but are living and working in the U.S. for two years or more • Borrowers with a departing residence not yet under contract • We have alternative ways to calculate income—such as bank statements • We offer jumbo loans too—up to $3M • If client is a perpetual investor— we allow for unlimited properties • If your client doesn’t have a 700+ credit score, we have multiple options for most credit scenarios • For self-employed borrowers, income is calculated based on bank statement deposits rather than tax returns • Bank statement loan option with 2 years self-employment • 12- or 24-month bank statement options • Up to 100% of eligible deposits averaged over 12-24 months • 90% LTV purchase to $1M for primary residences and second homes • 85% LTV to $1M investment property purchase • Loan amounts to $3M • Allows for unlimited investment properties with debt service of 75% with lease, appraisal and down payment • 80% max LTV • Loan amounts to $2M • SFR & 1-4 unit properties and condos • Allows for asset depletion to be used in lieu of salaried income REALTOR ADVANTAGES • In-house delegation means we control the transaction end to end to close on time • Expand the inventory of options available by providing your buyer the most flexibility for maximum jumbo and cash-out financing
31 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Specialty Products Bank Statement Loans Bank Statement Loans help business owners, the self-employed, gig workers, or retired borrowers get a home loan based on bank statements instead of tax returns. • Business owners can show 12-24 months of P&L statements • Typically, we will accept debt to income ratios up to 50% • Fixed-rate, adjustable or interest-only mortgages available • Sellers can put up to 6% of the sales price in closing costs (2% for investment homes) • Utilizes 12–24 months of personal or business bank statements from the same account • No mortgage insurance required • Up to 90% max LTV • 660 minimum credit score • 50% maximum DTI ratio • $3M maximum loan amount • $100,000 minimum loan amount • Minimum of 2 years self-employment with same business REALTOR ADVANTAGES • Provides a solution for borrowers who would typically not qualify for traditional loans, but can demonstrate stable and consistent income each month • Expand your reach with selfemployed or side-hustle borrowers with non-traditional loan solutions
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 32 Specialty Products Expanded Credit Loans Do you have a borrower that has current or past credit challenges? There are multiple products available that can help, depending on the circumstances, financing needs and other compensating factors. • If your client has had difficulty obtaining mortgage financing for a home, second home, or investment property due to a recent credit event or financial hardship, we have multiple solutions available • Qualify for financing in as little as one day after bankruptcy discharge • Various fixed and ARM loan terms, with interest-only ARM products if you are interested in a lower monthly payment for an initial period of time • Loan amounts from $100K–$3M • Multiple loan terms available including 40 year and interest-only • One day seasoning for recent credit events • Owner-occupied, second homes, and investment properties allowed • SFR, townhome, condo, 2–4 units • First time homebuyers permitted • May pay off debt to qualify • Unlimited cash out available • Foreign nationals allowed • ITIN required • Borrowers with departing residence not yet sold or leased can exclude departing residence payment from DTI calculation with 20% equity REALTOR ADVANTAGES • Expand your purchase pipeline with buyers who could not previously qualify due to a recent credit event or financial hardship • Create buzz and positive reviews by offering a program that assists those who need non-traditional financing to get them into their dream homes faster • We offer programs that don’t require a valid Visa
33 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Investment Investors have a unique set of needs depending on the type of property being financed, as well as their overall portfolio. APM has programs that cater to everyone from first-time investors to seasoned professionals looking to add to their real estate empire. • Investors can qualify off the cash-flow of the property, versus traditional income documentation when purchasing an asset • Available to first-time investors • Cash-out refinancing provides access to equity • Short term rentals allowed for refinance transactions • LTV up to 85% • Loan amounts to $2M • SFR and 1-4 unit properties, condos and townhomes • DSCR 75% with lease agreement, appraisal and down payment • Fixed and adjustable rate programs available • Rate nd term refinance and cash out options available • LLC vesting allowed • Unlimited investment properties with some programs REALTOR ADVANTAGES • Debt Service Coverage Ratio(DSCR)offers a financial alternative for buyers who thought they needed all cash or the use of hard money lenders to buy income properties • Cash-out refinancing is available to free up funds for your buyer’s next investment purchase • No limit to the amount of financed properties Specialty Products
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 34 DSCR A Debt Service Coverage Ratio (DSCR) loan can be a powerful tool for expanding your real estate portfolio.Owning real estate can be an excellent investment vehicle with the right financing and management of risk. APM offers its visionary investment program to make your investment goals possible. • DSCR loans take into account the property’s ability to generate income, not just the borrower’s creditworthiness. This means that, compared to traditional loans, they may qualify for a larger loan amount based on the property’s cash flow potential. • DSCR loans are specifically designed to ensure a property’s operating income comfortably covers its debt obligations. This not only reduces financial risk but also enhances an investor’s ability to manage multiple properties simultaneously without stretching their resources too thin. • Up to $2M loan amounts • Up to 80% LTV for purchase and rate/term refis • Up to 70% LTV for cash-out refi with loan amounts to $2M • Qualify with interest-only payment • Credit scores as low as 640 • Allows foreclosures, bankruptcies, and late payments (in some cases) • Qualify with bank statements • Non-warrantable condos allowed REALTOR ADVANTAGES • DSCR financing opens up a broader range of property options for your clients • By incorporating DSCR loans into the financing mix, clients can strategically acquire properties with sustainable cash flow • Assist first-time investors as they get into the market through cash flow qualifications Specialty Products DSCR
Products Equity 35
PRODUCT HIGHLIGHTS BORROWER ADVANTAGES 36 Equity Products HELOC Loans Homeowners can keep theirfirst-mortgage loans intact and tap their home equity through APM’s Equity Access Program. • Access their equity when they need it • Only pay interest on outstanding balance • Use as an emergency fund for unexpected expenses or repairs • Interest may be tax deductible* • Maximum credit line up to $500K, depending on equity and credit score • 10-year interest only draw period • 30-year variable term • Owner-occupied and second homes • Self-employed income accepted • Available as stand-alone HELOC or as purchase piggy-back • Choice 24: 2-year draw, 10-year interest only payment, 20-year repayment. Total term: 30 years • Choice 36: 3-year draw, 10-year interest-only payment, 20-year repayment. Total term: 30 years • Choice 60: 5-year draw, 10-year interest only payment, 20-year repayment. Total term: 30 years • Choice 120: 10-year interest-only draw period; 20-year repayment remains an option REALTOR ADVANTAGES • Help your clients access their equity for a home purchase • Allow clients who don’t want to move to tap their equity for improvements or renovations • Assist clients as they access their equity for other personal reasons, while keeping their low first mortgage intact Not available in all states. Please contact your Loan Advisor for details. *American Pacific Mortgage Corporation is not a financial service company or licensed tax advisors; the material provided is for informational and educational purposes only and should not be construed as investment or tax advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors. Contact your financial professional for your personal financial situation. HELOC program not available in some states.
37 PRODUCT HIGHLIGHTS BORROWER ADVANTAGES Equity Products Personal Loans (Non-Secured) Financing can be made fast and easy with personal loans. And we don’t have to tell you how valuable that is. APM’s trusted source can offer our customers low-interest fixed-rate loans from $5,000 to $100,000 for practically any purpose, including home improvements, auto loans, debt consolidation, you name it. • Personal loans can help with debt consolidation, home remodeling and improvements, medical bills and expenses • Fast funding (typically under 48 hours) • Get one lump sum instead of a moving balance • Predictable repayment schedule • Can help build credit score • Use cash for home improvements, debt consolidation, large purchases, and more • Ability to use funds for purchase of hard-to-finance properties such as tiny homes • More flexible term lengths more flexible than with home equity loans • Interest rates fixed (instead of those variable credit card rates) • Higher borrowing limit than a credit card • Lower interest rates than a credit card • No collateral required REALTOR ADVANTAGES • Atrract sellers who need to do home improvements prior to listing • Attract buyers who need to pay off high interest rate debt to qualify for their home purchase • Because these are unsecured loans, they won’t interfere with the selling or purchasing of a home but give your clients access to loans that meet their immediate needs LIGHT STREAM
Loan Cheat Sheet 3% (97% LTV) 10% (90% LTV) 3.5% (95% LTV) 0% (100% LTV) CONVENTIONAL LOAN JUMBO LOAN FHA LOAN VA LOAN 10% (90% LTV) 20% (80% LTV) Not Available Not Available 15% (85% LTV) 25% (75% LTV) Not Available Not Available 620 w/ 5% down 680 580 to 96.5% 580 to 90% | 620 to 96.5% 6% 6% 4% Yes (limits apply) Yes (limits apply) 3% w/<10% down 6% w/10-25% down 9% w/>25% down Yes Yes, (20% can be all gift, If less than 20% down, 5% from personal funds) 620 680 Not Available Not Available 0% to 3% Not Available Not Available Not Available Not Available 6% Yes (at least 5% from personal funds) Yes (at least 5% from personal funds) 720 w/ 15% down 680 Not Available Not Available Not Available Not Available Not Available Not Available Not Available 2% Not Available Not Available PRIMARY HOME SECOND HOME RENTAL HOME MIN. DOWN PAYMENT / LOAN-TO-VALUE (LTV) MIN. DOWN PAYMENT / LOAN-TO-VALUE (LTV) MIN. DOWN PAYMENT / LTV MIN. DOWN PAYMENT / LTV CREDIT SCORE CREDIT SCORE CREDIT SCORE CREDIT SCORE MAX SELLER CONCESSIONS MAX SELLER CONCESSIONS MAX SELLER CONCESSIONS GIFT MONEY GIFT MONEY MAX SELLER CONCESSIONS GIFT MONEY GIFT MONEY This information is provided for real estate professionals only, as a general guide. Not intended for consumers.
Teams Ready to Assist You WE’RE HERE TO HELP YOU SUCCEED American Pacific Mortgage stands out as a premier mortgage company because we’re dedicated to supporting real estate professionals in seamlessly navigating their clients’ loan needs. Our specialized teams are always here to collaborate with real estate professionals. Whether it’s transforming homes with renovation projects, handling commercial transactions, or addressing unique scenarios, our expert teams create a tailored approach, fostering successful partnerships and smooth loan processes. With a commitment to excellence, APM empowers real estate agents to provide top-notch service to their clients across a diverse range of lending needs. The result? More (and better) reviews, increased referrals, and a stable of returning, lifelong clients. RENOVATION CONSTRUCTION REVERSE SCENARIOS COMMERCIAL CONDO DESK (DEAL DESK)
Calculate Mortgage Options Scan Encrypted Paperwork Apply for a loan on the phone Track Loan Progress Chat with the Team Sign Mortgage Documents 2–5 Minutes 5–20 Minutes 5–20 Minutes 2–5 Minutes As Much As You LIke 2–10 Minutes DESIGNED FOR BORROWERS ON THE MOVE REALTOR ADVANTAGES • Co-branded App and web link • Easy way for the agent to share the application • Customize home page with personalized web links • Make quick calculations • Helps borrowers get quicker and easier pre-approvals • Access the pre-approval letter and modify as the Loan Advisor allows • Notifications and status updates • Communicate with borrowers and lending team via chat • Ability to remit documents/ purchase contracts and addendums ASK YOUR LOAN ADVISOR TO CREATE A CO-BRANDED APP TODAY! APM Mobile
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© American Pacific Mortgage Corporation (NMLS 1850). All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity. This information is provided for real estate professionals only, as a general guide. Not intended for consumers. v. 02/24